Brightcove prices IPO, raises $55 million

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By Rodney H. Brown

The moving target that has been Brightcove Inc.’s initial public offering pricing has been pinned down, and the barely still Cambridge-based company has raised $55 million, with a valuation of about $290 million.

In a final prospectus filing with the U.S. Securities and Exchange Commission late Thursday, Brightcove priced 5 million shares in its IPO at $11 per share. The company is trading on the Nasdaq Market under the ticker symbol “BCOV.” Brightcove said the net proceeds should be about $47.4 million after costs and commissions, and that paying off debt with Silicon Valley Bank would further cut that to about $40.4 million.

The filing showed that Brightcove founder, chairman and CEO Jeremy Allaire made $414,144 in 2011 in combined salary and other compensation. However the big winner was president and COO David Mendels, who made $4.358 million in 2011, when his salary, stock and option awards are added together.

After the IPO, Allaire will be the largest individual shareholder, with 7.1 percent of the company, but Brightcove’s venture capital backers General Catalyst Partners and Accel Partners will each hold 21.4 percent of the public company.

Earlier this month, Brightcove announced it would be pricing the IPO in a range that could have gone to $12 per share for up to 5.75 million shares, which would have brought in $69 million. That was up from the initial estimate of a $50 million IPO back in August.

In April, Brightcove plans to relocate from Cambridge to Boston’s waterfront. Announced in July 2011, Brightcove has signed a lease for 82,000 square feet of space at the complex, developed by Boston Properties, more than doubling the company’s current 30,000 square feet in Cambridge.

Founded in 2004, Brightcove offers a platform for delivery of online video over the web or mobile devices, through a service it is calling Video Cloud. Recently the company has introduced a product called AppCloud, for the creation and delivery of cloud-based software applications. Allaire was named a Mass HighTech All-Star in 2007.

After an initial spike above $15.50, Brightcove hovered around its opening price all day, trading at $14.63 per share by mid afternoon.

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